Why is Malaysia still pushing 5G despite underutilised 3G and 4G?

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Malaysia Continues 5G Rollout Amidst Underutilised Existing Technologies Due to Economic and Future Preparedness Considerations

Despite the Covid-19 pandemic revealing an underutilisation of existing 3G and 4G technologies in Malaysia, the government remains committed to its 5G rollout plan. This continuation is driven by the significant projected economic contributions of 5G, including substantial GDP growth and job creation, as well as the necessity for industry players to invest and prepare for future technological advancements.
Projected Economic Benefits of 5G Implementation

The Malaysian Institute of Economic Research (MIER) estimates that the implementation of 5G technology will contribute significantly to the nation's Gross Domestic Product (GDP). Between 2021 and 2025, this contribution is projected to reach up to RM12.7 billion. Furthermore, the rollout is expected to foster job growth, with an anticipated creation of over 39,000 new, higher-income jobs, nearly 40% of which are expected to materialise by 2025.
Continued Focus on Connectivity and Investment

Communications and Multimedia Minister Datuk Saifuddin Abdullah acknowledged that the pandemic highlighted the underutilisation of 3G and 4G. However, he stressed that the policy regarding 5G remains largely unchanged, with an emphasis on stepping up preparations. The minister clarified that while the immediate priority is connectivity in rural areas, which do not necessarily require 5G, delaying the 5G rollout is not advisable. This is because all industry players need to prepare for the next generation of technology, a process that necessitates substantial investment.
Government Allocation for 5G Ecosystem Development

To stimulate the adoption and development of 5G use cases across various sectors, the Malaysian government allocated RM50 million in Budget 2020. This funding is intended to encourage the integration of 5G technology in industries such as automotive, manufacturing, public safety, education, agriculture, tourism, and entertainment and media. This proactive measure aims to build a robust ecosystem that can leverage the capabilities of 5G technology once it is fully deployed.

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Why is Malaysia still pushing 5G despite underutilised 3G and 4G?

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